Hastings Economic Development and Redevelopment Authority (HEDRA) moved forward to market the industrial park site, authorized an enviormental assessment on Block 28 and discussed the 2026 HEDRA budget and open business survey in the June 12 meeting.
Industrial Park Site
HEDRA unanimously approved an agreement to allow Gaughan Companies to market the long-empty 50-acre industrial park site, located along Spiral Boulevard.
The 12-month agreement, which ends July 6 2026, would allow Gaughan Companies to market the property for development including for potential residential development. Previous marketing has only been for industrial developments.
The site has been for sale since the early 1980s, and has “always being held aside for a large developer,” said Community Development Director John Hinzman.
Gaughan Companies is a third generation Forest-Lake-based commercial real estate company founded in 1969.
“One of the areas that we are finding very promising right now in commercial real estate is indeed industrial. We believe Hastings is a great location to be in. We’d love to be a part of it,” said Timothy Gaughan, Commercial Real Estate Sales and Leasing Agent with Gaughan Companies.
“We are not going to stick a sign in the ground and put an ad up online and call it a day,” said Lucas Gaughan, Commercial Broker and Business Developer at Gaughan Companies. Lucas discussed contacting both industrial tenant brokers in the areas as well as some 50 developers who might be interested in the site.
“It’s pretty cut and dry data. It’s about getting it in front of the right people,” said Lucas.
Commissioners at the meeting discussed options to review potential developments, citing nearby fights over data centers: “I think we are going to need some ability to control that” said Commissioner Margaret Horsch. A right of refusal was planned to be added to the contract.
Block 28 Environmental Assessment
Commissioners also unanimously authorized a phase I environmental assessment for Block 28. Block 28, also known as the Gateway Project, is a potential mixed-use retail/residential development at the intersection of Highway 61 and 4th St.
This assessment would provide “an underground look at what the developability of what the land is,” said Economic Development Coordinator Alex Menke. Previously, Hinzman had discussed the possibility of an underground parking lot on the site in order to minimize the above ground parking, which is dependent in part on bedrock.
Of the four bids received by the city, city staff recommended the bid from GZA Geoenvironmental Inc. based on the depth of their geotechnical proposed according to Menke.
2026 HEDRA Budget Priorities
Hinzman provided an overview of the changes from the 2025 HEDRA budget to 2026.
The Revolving Loan Fund, which had a budget of $120,000 in 2025, will not continue into 2026. The fund was meant to bridge the gap between private financing and an owner’s equity for both commercial and residential properties. It was previously used for local businesses like Spiral Co-op.
“There could be items that may have a need in the next couple of years, I just don’t think we have the mechanisms to fund it,” said Hinzman, citing funds being spent on Block 28 and tied up with other projects.
HEDRA would also seek $65,000 for the development of a Downtown Master Plan, meant to guide future development downtown. This new plan would replace the Heart of Hastings plan which was developed in 2003.
Hinzman admitted that the ask would come during a “tough budget year,” that is further constrained by the construction of water treatment plants: “the construction we have for PFAS obligations over the next couple of years is going to take a tremendous bite out of our ability to do a number of things,” said Hinzman.
Business Survey
Menke discussed the ongoing survey of local businesses in order to gather feedback on how to make the city easier to work with from a business standpoint.
“The city is not always regarded as a business-friendly entity to work with, and as Economic Development Coordinator, that’s not something I love to hear,” said Menke.
The survey is currently up on the city’s website and asks questions like “What feedback do you have for the City so that it can build a more "business friendly" environment?” The survey can be taken anonymously.